Effect of Defense Budget Cut

Israeli industry will suffer the most by the IL 1.4 billion cut in the defense budget, according to details on the reductions outlined today by Defense Minister Ezer Weizman. But Weizman stressed the cuts will not harm the army’s development and preparedness program as Chief of Staff Gen. Mordechai Gur said earlier this week. He said Gur agrees with the cuts.

The reduction in the defense budget includes a decrease of IL 622 million in military goods bought in Israel and a IL 153 million cut in construction costs. The new budget will also reduce purchases abroad by IL 550 million.